End of Day 1 Quiz

Within client acceptance, you must document the client categorisation. Where would you find the client categorisation?

• Engagement letter

• Inflo

• Take on documents within Appian

What platform would you use to create an engagement letter?

• OnePlace

• OneDoc

• LEAP

• Sharepoint templates

What would be the most appropriate benchmark for a trading entity with low profit margins?

• PBT
• Revenue

• Total assets

• Net assets

What would be the best benchmark for a holding entity?

• PBT

• Revenue

• Total assets

Which THREE of the following factors would be deemed EXTERNAL when considering materiality % threshold?

• Volatile market for the industry

• Multiple internal control deficiencies identified in prior year

• Listed entity

• Significant third party debt with a bank

Which TWO of the following INTERNAL factors would you consider when determining the % threshold for PM?

• Material and highly judgemental estimates

• Inflationary environment

• Internal control deficiencies in prior year

• Government funding

What is the maximum threshold for Performance Materiality?

• 65%

• 70%

• 75%

• 80%

For which of the following areas must be we obtain and document our understanding of the BUSINESS PROCESS? (SELECT TWO)

• For all material FSLI's

• Financial Reporting Process

• Significant classes of transactions, balances and disclosures (SCOT+)

In which of the following areas must we document our understanding of controls?

• Significant risks

• Journals

• Risks where we intend to rely upon the operating effectiveness of controls

• All SCOT+ risks

Which of the following may indicate a risk factor?

• Complexity

• Change

• Fraud

• Problem